Tata Steel UK breaks ground on EAF project

In a powerful symbol of transformation and commitment, Tata Steel UK hosted a high-profile groundbreaking ceremony to mark the start of a new era for the company as it begins construction of the UK’s largest low-carbon steelmaking facility. This is part of a £1.25 billion transformation to low CO₂ steelmaking, supported by a £500 million investment from the UK Government.

The new electric arc furnace (EAF), set to be commissioned at the end of 2027, is expected to reduce Port Talbot’s carbon emissions by approximately 90%, equivalent to 5 million tonnes of CO₂ per year, while securing high-quality sustainable steel production and supporting 5,000 UK jobs directly.

In a personal communication to the company’s workforce and contractor partners, Tata Steel UK’s CEO, Rajesh Nair, said: “Rarely have I felt as proud as I was today for the visit of our Chairman, Mr Chandrasekaran and CEO & MD TV Narendran.

“It was a privilege to be able to introduce so many of our project team as well as our technology and contractor partners, and to share the details of how far we have already come and the plans we have for the future.

“And to host a groundbreaking ceremony at the site of the new EAF alongside so many senior politicians and project partners, in front of the UK media, was a fitting way to celebrate such a special moment in our history.

“It was a real pleasure to be able to share this day with so many people from our own organisation, youngsters on the project, and our partners in the Trades Unions. Because after a difficult couple of years, it was right to not only recognise the impact these changes have had on many of our people and on our communities, but also to look forwards with energy and optimism to a future that will be more sustainable for all of us.”

Chandrasekaran, speaking to attendees at the event, also recognised the difficult times the company has been through in recent years, saying:  “This site has gone through a lot of difficulties, and the people here have been through hardship. 

“This is a major commitment we are making and it is a new era. It is important we get this project right. I personally am very committed to making this happen.”

 He also recognised the efforts of the UK workforce: “To all of you working on this project – thank you, I deeply appreciate everything you are doing. This transformation is a new start, a historic moment.”

“Many people, many naysayers, thought that this day would not come. The Tata Group is super committed to this project – that is why I wanted to be here today as a demonstration of my personal commitment and the group’s commitment. 

“I would like to thank the Welsh Government, His Majesty’s Government, the trades unions, the local community – we are all this together as one team and committed to making this happen. And I hope we will do such a good job that it will revive the economy here.” 

Secretary of State for Business and Trade, Johnny Reynolds, added: “This is an important moment and a chance to look to the future with optimism. 

“There have been difficult times, there have been ups and downs, and people have been through a lot. We should always acknowledge that. But we should also use that as inspiration to look to the future. 

“I would like to thank Tata for the investment they’re putting into what is a hugely ambitious transformation project. Most of all, though, I want to thank the people who work here, because without a skilled workforce dedicated to making this happen, none of this would be possible. 

“In the UK government, we know there are lots of policy changes that need to happen to create the conditions for success. 

“But I can tell you, the commitment from the UK government, working hand-in-hand with our Welsh government colleagues, is absolute – and that is why we should be excited and optimistic about what we are seeing here today. 

“I want this site at Port Talbot to not just be a story about this steelworks, but a story about how we will tackle industrial transformation across the UK, working with unions, working with the Welsh government, working with the business here to succeed and to deliver. 

“It’s a genuine privilege to be here. Thank you for what you have done so far, and thank you so much for what is to come in the future.”

Rajesh concluded his message to employees saying: “I was delighted by the visible support of the UK and Welsh governments, evidenced so clearly by their presence, including the Secretary of State for Business, the Secretary of State for Wales, Minister for Business, First Minister of Wales and the Cabinet Secretary for Economy, Energy & Planning, not to mention seniors from the local council.

“Such stakeholders are critical to the future success of Tata Steel UK, and we should welcome every such opportunity to demonstrate our progress with our plans and the passion and professionalism of our people.”